Concerns Over Price Manipulation in the Crypto Market by DeFiance Founder

Arthur Cheong, CEO of DeFiance Capital, has highlighted concerns regarding manipulation in crypto pricing between market makers and centralized exchanges. He describes a lack of transparency leading to artificially sustained prices, damaging investor confidence. Analysis reveals that the majority of tokens launched this year on Binance experienced significant declines, exacerbating investor skepticism towards the crypto market.

Arthur Cheong, CEO of DeFiance Capital, has raised alarm over the integrity of crypto token pricing, asserting that manipulation occurs between market makers and centralized exchanges (CEXs). He indicated that the lack of transparency results in artificially sustained asset prices, which pose substantial risks to investors.

Cheong described a troubling “blackbox” scenario where coordination between crypto projects and market makers obscures the true dynamics of supply and demand. This manipulation jeopardises market confidence and could lead investors to deem the entire crypto landscape as unviable.

Critically assessing CEXs, Cheong noted their failure to address price manipulation issues undermines trust within the altcoin sector. He highlighted a dire situation where market makers and projects collaborate to artificially maintain prices, raising doubts about whether any observed price movements are genuine.

He cited that tokens launched via Token Generation Events (TGEs) frequently lose substantial value shortly after their release, with many declining by 70% or more within months. Cheong warned that without intervention from industry leaders, much of the market could remain unattractive to investors for an extended period.

In response to Cheong’s concerns, crypto analyst Miles Deutscher presented data showing that only 11% of 27 tokens launched on Binance this year have retained positive price movements, while the rest have seen losses of up to 90%. Deutscher linked this trend to diminishing retail investor engagement in the market.

The crypto community is abuzz with reactions following Cheong’s statements, with some users urging exchanges like Binance and Coinbase to implement greater transparency standards. They advocate for more explicit disclosure from projects before listings, emphasizing that this is vital for restoring industry credibility.

Conversely, some community members suggest a more cynical perspective, claiming many cryptocurrencies are fundamentally worthless and that any initial rise is purely speculative. As a user noted, the true value of such tokens does not equate to investing, but rather to speculation driven by fleeting interest.